And we’re back with my favorite topic of East Coast vs West Coast. Comparison between cities through the lens of housing is one of my absolute indulgences, and today we’re focusing on two gems: Pennsylvania and California.
On the one hand, Pennsylvania offers the charm of history, culture, and nature, whereas California presents beaches, glorious weather, and fun! I’m pretty sure that I’m going to rep my hometown, California, forever!
And that’s the thing with choosing these two places. Jon is from Pennsylvania, and my heart belongs to California, so we thought it would be great to see a friendly yet logical housing banter between two friends.
Speaking of logic, when it comes to housing, the cost of living trumps all categories. Individuals looking for a place to buy their home consider the budget, affordability, transportation, groceries, schools, and overall factors that make up a smooth work-life balance.
Housing Costs
California
Housing is arguably one of the major chunks of California’s high cost of living. Zillow suggests that the median home price in California as of this quarter is around $770,000. In more expensive areas like San Jose, San Diego, and Los Angeles, prices often exceed $1 million.
Rental costs are equally steep, with one-bedroom apartments averaging around $1,800 in urban areas.
My friend Dave came to us seeking advice because we buy houses. He was overwhelmed by the money that sellers were expecting and sought honest advice. My single question to him was,
“Does the city offer everything you need in life for the next five years?”
He looked stunned, so I explained that a healthy cost of living is what would make the money feel reasonable. Within minutes, he was on the phone with his wife, discussing what he had just learned.
Pennsylvania
Coming to Pennsylvania, the housing market is more stable AND affordable. The median home price in smaller cities is around $260,000. And even in larger cities like Philadelphia or Pittsburgh, the median prices remain in the $350,000 bracket.
Rents are substantially lower at around $1,500 for a one-bed apartment.
No wonder Jon pushes everyone to move to Philly!
Verdict
In the category of affordability, Pennsylvania is the undisputed winner.
Utilities
California
Man! California’s expensive. Electricity costs average around 30 cents per kWh, which is one of the highest in the country! Can you believe that I, in my right mind, chose to pay that?! And because of regulatory factors, water, internet services, and gas also cost more.
Pennsylvania
Pennsylvania has cold winters and hot summers, leading to higher energy use in both seasons. However, in comparison to the Golden State, utility rates are lower. Electricity rates are around 15 cents per kWh, which is half of what we pay in California.
Verdict
PA’s utilities are generally less expensive, even if the seasonal demands are higher.
Transportation
California
California heavily relies on personal automobiles. Outside of San Francisco, public transportation is limited. Trust me, I pay a lot for gas. Expensive auto insurance, high gas prices often exceeding $5.00 per gallon, and traffic congestion make transportation costly. And if you have a long commute, say goodbye to saving anything in this department.
Pennsylvania
Pennsylvania offers more diverse transportation options, particularly in Philadelphia. The public transit system is one of the great things about PA. Gas prices are much lower, around $3.70 per gallon, and car insurance is lower. Rural areas do require personal vehicles, but overall, it works out well for the residents.
Food and Groceries
California
Grocery prices are higher due to labor costs, distribution, and taxes. Dining out is expensive as well. For many people, it can get hard to keep up with food costs.
Pennsylvania
Grocery costs are much cheaper. Essentials like milk, eggs, and produce tend to be easily affordable. Dining costs average around $40 per person.
Verdict
Food is another essential indicator in the cost-of-living game. And Pennsylvania comes out as the clear winner here, too.
Healthcare
California
Now here’s a tough one. Affordable healthcare is an existing crisis for our country, and it plays a major role in the cost of living standards. Healthcare in California, unfortunately, tends to be on the higher side due to administrative and labor costs. Even with insurance, deductibles can be high.
Pennsylvania
Although healthcare costs are lower on average, the medical centers may be a tier below in comparison to California. Premiums and prescription costs are generally more manageable.
Verdict
Pennsylvania stands out in medical care as well.
Taxes
Income Tax
- California has tax rates of around 13%, which is one of the highest in the nation.
- Pennsylvania has a flat income tax rate of 3.07%.
Sales Tax
- California has a base sales tax of 7.25%.
- Pennsylvania’s state sales tax is 6%, with some cities like Philadelphia adding 2%.
Property Tax
Both states have relatively high property taxes, though Pennsylvania’s are slightly above the national average, and California benefits from Proposition 13, which caps property tax increases.
Verdict
When it comes to property taxes, California takes the lead. However, Pennsylvania is more favorable in income and sales taxes.
Education and Childcare
California
California offers a vast network of public universities, but K–12 education quality can be inconsistent. Childcare costs are very high, often exceeding $1,500 – $2,000 per month per child.
Pennsylvania
Pennsylvania has a strong state education system with more evenly distributed K–12 public school performance. Childcare costs are also lower, averaging $800 – $1,200 per month, depending on location.
Verdict
Pennsylvania provides better affordability for families with children.
Wages and Job Market
California
California has a dynamic economy with high-paying jobs in tech, entertainment, finance, and biotech. The minimum wage is $16–$18 per hour, depending on the city, and average salaries are higher. However, these wages often don’t stretch far due to the high cost of living.
Pennsylvania
Pennsylvania’s job market is more diversified, with strengths in healthcare, education, manufacturing, and logistics. The minimum wage is $7.25 per hour (the federal minimum), though some employers pay more. Average wages are lower, but they go further due to cheaper living costs.
Verdict
California offers higher income potential, but Pennsylvania offers better value.
Final Comparison
We’ve been through several categories that build into the cost of living. Living a well-balanced financial life may not be a piece of cake, but it can always be made easy and sensible. Whether you are selling your house, looking into buying a house, or simply investing in real estate, a healthy cost of living can make things smoother for a secure life.
I’ve assessed these categories for both California and Pennsylvania and established simple answers that may help you or a friend decide between the two. Don’t think of this as Pennsylvania winning or California losing; these are more guidelines to see what suits you in your financial and housing journey.
Category Pennsylvania California Winner
Housing Low Very High PA
Utilities Moderate High PA
Transport Lower High PA
Groceries Lower High PA
Healthcare Moderate High PA
Taxes Low Very High PA
Education/
Childcare Affordable Expensive Draw
Job Market Moderate High Draw
Conclusion
So here’s my take on the cost of living comparison in Pennsylvania vs California. PA clearly offers a more affordable and balanced lifestyle. For those looking to stretch their income, Pennsylvania is a strong contender. But if your requirement is higher salaries, welcome to California.
Ultimately, the choice between the two regions comes down to what you value. For me, aspirational lifestyle opportunities draw me to California, and for Jon, economic practicality keeps him in Pennsylvania. But if the cost of living is your primary concern, Pennsylvania wins hands down.
